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WASHINGTON – In a swift victory for President Barack Obama, the Democratic-controlled House approved a historically huge $819 billion stimulus bill Wednesday night with spending increases and tax cuts at the heart of the young administration's plan to revive a badly ailing economy. The vote was 244-188, with Republicans unanimous in opposition despite Obama's frequent pleas for bipartisan support.
"This recovery plan will save or create more than three million new jobs over the next few years," the president said in a written statement released moments after the House voted. Still later, he welcomed congressional leaders of both parties to the White House for drinks as he continued to lobby for the legislation.
Earlier, Obama declared, "We don't have a moment to spare" as congressional allies hastened to do his bidding in the face of the worst economic crisis since the Great Depression.
The vote sent the bill to the Senate, where debate could begin as early as Monday on a companion measure already taking shape. Democratic leaders have pledged to have legislation ready for Obama's signature by mid-February.
A mere eight days after Inauguration Day, Speaker Nancy Pelosi said the events heralded a new era. "The ship of state is difficult to turn," said the California Democrat. "But that is what we must do. That is what President Obama called us to do in his inaugural address."
With unemployment at its highest level in a quarter-century, the banking industry wobbling despite the infusion of staggering sums of bailout money and states struggling with budget crises, Democrats said the legislation was desperately needed.
"Another week that we delay is another 100,000 or more people unemployed. I don't think we want that on our consciences," said Rep. David Obey, D-Wis., chairman of the House Appropriations Committee and one of the leading architects of the legislation.
Republicans said the bill was short on tax cuts and contained too much spending, much of it wasteful, and would fall far short of administration's predictions of job creation.
The party's leader, Rep. John Boehner of Ohio, said the measure "won't create many jobs, but it will create plenty of programs and projects through slow-moving government spending." A GOP alternative, comprised almost entirely of tax cuts, was defeated, 266-170.
On the final vote, the legislation drew the support of all but 11 Democrats, while all Republicans opposed it.
The White House-backed legislation includes an estimated $544 billion in federal spending and $275 billion in tax cuts for individuals and businesses. The totals remained in flux nearly until the final vote, due to official re-estimates and a last-minute addition of $3 billion for mass transit.
Included is money for traditional job-creating programs such as highway construction and mass transit projects. But the measure tickets far more for unemployment benefits, health care and food stamp increases designed to aid victims of the worst economic downturn since the Great Depression of the 1930s.
Tens of billions of additional dollars would go to the states, which confront the prospect of deep budget cuts of their own. That money marks an attempt to ease the recession's impact on schools and law enforcement. With funding for housing weatherization and other provisions, the bill also makes a down payment on Obama's campaign promise of creating jobs that can reduce the nation's dependence on foreign oil.
The centerpiece tax cut calls for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes.
The House vote marked merely the first of several major milestones a for the legislation, which Democratic leaders have pledged to deliver to the White House for Obama's signature by mid-February.
Already a more bipartisan — and costlier — measure is taking shape in the Senate, and Obama personally pledged to House and Senate Republicans in closed-door meetings on Tuesday that he is ready to accept modifications as the legislation advances.
Rahm Emanuel, a former Illinois congressman who is Obama's chief of staff, invited nearly a dozen House Republicans to the White House late Tuesday for what one participant said was a soft sales job.
This lawmaker quoted Emanuel as telling the group that polling shows roughly 80 percent support for the legislation, and that Republicans oppose it at their political peril. The lawmaker spoke on condition of anonymity, saying there was no agreement to speak publicly about the session.
In fact, though, many Republicans in the House are virtually immune from Democratic challenges because of the makeup of their districts, and have more to fear from GOP primary challenges in 2010. As a result, they have relatively little political incentive to break with conservative orthodoxy and support hundreds of billions in new federal spending.
Also, some Republican lawmakers have said in recent days they know they will have a second chance to support a bill when the final House-Senate compromise emerges in a few weeks.
Rep. Randy Neugebauer, R-Texas, sought to strip out all the spending from the legislation before final passage, arguing that the entire cost of the bill would merely add to soaring federal deficits. "Where are we going to get the money," he asked, but his attempt failed overwhelmingly, 302-134.
Obey had a ready retort. "They don't look like Herbert Hoover, I guess, but there are an awful lot of people in this chamber who think like Herbert Hoover," he said, referring to the president whose term is forever linked in history with the Great Depression.
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'03 PPW Track: Greddy EVOII (FS), JWT, Nismo, RAYS, Ichiba, Falken, Muteki, Tanabe GF210, 15% sides and rear 45% up front, Acura (ask if you must) Etc.
I know, huh. I'm working day in and day out and I'm nowhere close to my first million. Yet these politicians throw hundreds of BILLIONS around like it's chump change. Stop taking 25% of my $hit, please. kthx.
Engineers: U.S. infrastructure a 'D'
American Society of Civil Engineers says under-funding has caused the nation's infrastructure to crumble .
Report Card 2009 Grades
Aviation D
Despite surging oil prices, volatile credit markets, and a lagging economy, the Federal Aviation Administration predicts a three percent annual growth in air travel. These travelers are faced with increasing delays and inadequate conditions as a result of the long overdue need to modernize the outdated air traffic control system and the failure to enact a federal aviation program.
Bridges C
More than 26%, or one in four, of the nation's bridges are either structurally deficient or functionally obsolete. While some progress has been made in recent years to reduce the number of deficient and obsolete bridges in rural areas, the number in urban areas is rising. A $17 billion annual investment is needed to substantially improve current bridge conditions. Currently, only $10.5 billion is spent annually on the construction and maintenance of bridges.
Dams D
As dams age and downstream development increases, the number of deficient dams has risen to more than 4,000, including 1,819 high hazard potential dams. Over the past six years, for every deficient, high hazard potential dam repaired, nearly two more were declared deficient. There are more than 85,000 dams in the U.S., and the average age is just over 51 years old.
Drinking Water D-
America's drinking water systems face an annual shortfall of at least $11 billion to replace aging facilities that are near the end of their useful life and to comply with existing and future federal water regulations. This does not account for growth in the demand for drinking water over the next 20 years. Leaking pipes lose an estimated seven billion gallons of clean drinking water a day.
Energy D+
Progress has been made in grid reinforcement since 2005 and substantial investment in generation, transmission and distribution is expected over the next two decades. Demand for electricity has grown by 25% since 1990. Public and government opposition and difficulty in the permitting processes are restricting much needed modernization. Projected electric utility investment needs could be as much as $1.5 trillion by 2030.
Hazardous Waste D
Redevelopment of brownfields sites over the past five years generated an estimated 191,338 new jobs and $408 million annually in extra revenues for localities. In 2008, however, there were 188 U.S. cities with brownfields sites awaiting cleanup and redevelopment. Additionally, federal funding for "Superfund" cleanup of the nation's worst toxic waste sites has declined steadily, dropping to $1.08 billion in 2008, its lowest level since 1986.
Levees D-
More than 85% of the nation's estimated 100,000 miles of levees are locally owned and maintained. The reliability of many of these levees is unknown. Many are over 50 years old and were originally built to protect crops from flooding. With an increase in development behind these levees, the risk to public health and safety from failure has increased. Rough estimates put the cost at more than $100 billion to repair and rehabilitate the nation's levees.
Inland Waterways D-
The average tow barge can carry the equivalent of 870 tractor trailer loads. Of the 257 locks still in use on the nation's inland waterways, 30 were built in the 1800s and another 92 are more than 60 years old. The average age of all federally owned or operated locks is nearly 60 years, well past their planned design life of 50 years. The cost to replace the present system of locks is estimated at more than $125 billion.
Public Parks & Recreation C-
Parks, beaches, and other recreational facilities contribute $730 billion per year to the U.S. economy, support nearly 6.5 million jobs, and contribute to cleaner air and water and higher property values. Despite record spending on parks at the state and local level, the acreage of parkland per resident in urban areas is declining. While significant investments are being made in the National Park Service for its 2016 centennial, the agency's facilities still face a $7 billion maintenance backlog.
Rail C-
A freight train is three times as fuel efficient as a truck, and traveling via passenger rail uses 20 percent less energy per mile than traveling by car. However, growth and changes in demand patterns create bottlenecks which are already constraining traffic in critical areas. Freight and passenger rail generally share the same network, and a significant potential increase in passenger rail demand will add to the freight railroad capacity challenges. More than $200 billion is needed through 2035 to accommodate anticipated growth.
Roads D-
Americans spend 4.2 billion hours a year stuck in traffic at a cost to the economy of $78.2 billion, or $710 per motorist. Poor road conditions cost motorists $67 billion a year in repairs and operating costs, and cost 14,000 Americans their lives. One-third of America's major roads are in poor or mediocre condition and 36% of major urban highways are congested. The current spending level of $70.3 billion per year for highway capital improvements is well below the estimated $186 billion needed annually to substantially improve the nation's highways.
Schools D
Spending on the nation's schools grew from $17 billion in 1998 to a peak of $29 billion in 2004. However, by 2007 spending fell to $20.28 billion. No comprehensive, authoritative nationwide data on the condition of America's school buildings has been collected in a decade. The National Education Association's best estimate to bring the nation's schools into good repair is $322 billion.
Solid Waste C+
In 2007, the U.S. produced 254 million tons of solid waste. More than a third was recycled or recovered, representing a seven percent increase since 2000. Per capita generation of waste has remained relatively constant over the last 20 years. Despite those successes, the increasing volume of electronic waste and lack of uniform regulations for disposal creates the potential for high levels of hazardous materials and heavy metals in the nation's landfills, posing a significant threat to public safety.
Transit D
Transit use increased 25% between 1995 and 2005, faster than any other mode of transportation. However, nearly half of American households do not have access to bus or rail transit, and only 25% have what they consider to be a "good option." The Federal Transit Administration estimates $15.8 billion is needed annually to maintain conditions and $21.6 billion is needed to improve to good conditions. In 2008, federal capital outlays for transit were only $9.8 billion.
Wastewater D-
Aging systems discharge billions of gallons of untreated wastewater into U.S. surface waters each year. The Environmental Protection Agency estimates that the nation must invest $390 billion over the next 20 years to update or replace existing systems and build new ones to meet increasing demand
^ building infrastructure doesn't create profit unless it's been privatized. A bridge will not make you money. It will pay the salaries - scuse me, our tax dollars will pay their salaries, but you don't get a return on investment. So how does that stimulate the economy to the point that America digs out of such a huge hole?
Kut, true, the war isn't over yet but that for a group of people that admonished the previous administration for the amount of money poured into Afghanistan and Iraq it should be a bit of a surprise that the interest alone is greater than what they complained about.
And why didn't we learn that 500/1000 tax break or refund doesn't solve the issue? It's a pittance and isn't enough to boost consumer spending.
650 million to subsidize digital tv conversion? really? That's going to help the economy?
Also, does money for unemployment benefits stimulate the economy? You want to give more money to people that don't make money?
EDIT: Bush adds ~4 trillion to the national debt in eight years of service. Obama is attempting to add 1 trillion of debt in the first 7 days of taking office. At some point people need to start seeing that it's all part of the problem and not part of the solution.
Last edited by IllumEstVeritas; 01-28-2009 at 07:54 PM.
you do know the government can charge tolls right?
I do, but if they're including that in the stimulus package they certainly aren't making it known. Ultimately, I'm not for this package. It's makes no sense to spend so freely when the economy is pretty weak. They could stimulate the economy in more proven ways, but government doesn't care.
1. Cut government spending.
2. Cut corporate tax rate.
3. Cut income tax rate(since we'll never see it go away).
We can't continue to go into debt and expect to climb out of this hole.
Because you'd then be talking about tolls. I'm not saying it's a good thing, but that's the only way you can recoup what you put in.
ever heard of private contracts?
and actually with a zero interest rate, this is probably cheapest time for goverment to spend. In terms of gdp ther stimulmoose actually isnt enough to raise inflation anywhere close to 4%...probably around 1 actually... considering we are 8% off on GDP right now(http://www.cbo.gov/ftpdocs/99xx/doc9...07-Outlook.pdf page 10).
None of those things are proven. And tax rates are not the problem in this economy.
That's why I listed government spending as #1 - We have to erase deficit spending. It's like someone that spends well beyond their means - you might be able to live well for a while, but you'll find yourself is deep trouble at the end. If we cut spending, the government can finally start giving back our money without increasing debt. Will it happen? It probably will never be enough to really matter. =\
House OKs $819B stimulus bill in win for Obama
